Pre-paid cash card is a stored-value card, which has monetary value loaded onto it and that is usually rechargeable. The monetary value of a pre-paid cash card is preloaded on the card.
A pre-paid cash card can be used to make purchases, either online or off-line. It can be used in the same way that credit card and debit card are used. Pre-paid cash card relying on the same networks as credit and debit card be, encrypted communications, and electronic banking protocols.
But there is one thing differentiate pre-paid cash card from credit card and debit card, that is, anyone can obtain a pre-paid cash card without regard to prior financial standing or having an existing bank account as collateral. One can start using a pre-paid cash card by just loading money onto the card at bank, post office, ATM machine and so forth.
There is a benefit when using the pre-paid cash card-no risk of running into debt. A card holder can only spend up to the amount loaded onto the card as there are no credit or overdraft functions provided for pre-paid cash card holders.
Examples of pre-paid cash card:
- Touch 'n Go card (Malaysia)-This card can be used in entire highways stretches in Malaysia with the familiar TnG and SmartTag sign marked on the road. Besides, it can also be used for public transportation and ticketless parking. And soon, using Touch 'n Go card to buy fast food in Malaysia will be a reality.
- Octopus Card (Hong Kong)- This card can be used in all public transport in Hong K
ong. It can be used for payment at convenience stores, supermarkets, fast-food restaurants, on-street parking meters, car parks, and other point-of-sale applications such as service stations and vending machines. Besides, it can also be used for access control in buildings and for school administrative functions.
Applications of pre-paid cash card for consumer:
- Online shopping
- Payment for petrol
- Public transportation
- Payment for toll fare
- Bill payment
- People who are travelling in other country
- Topping up for mobile phone
To read more regarding Pre-paid cash card, please refer to the following links:
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